>Gitanjali Gems Limited (FIRST CALL)

■We initiated the coverage of Gitanjali Gems and set a target price of Rs.148.00 for Medium to Long term gains.

■ The company became first to produce the world’s smallest heart shaped diamond (0.03 carat) and developing some 25 patented facet patterns.

■ Gitanjali Group, the jewellery maker and exporter, is planning to invest Rs 400 crore in next 18 months for expanding its retail business in India and overseas markets.

■ Gitanjali Gems’ wholly owned subsidiary, Gitanjali Lifestyle has decided to set up a joint venture company in India in collaboration with Damas LLC, Dubai.

■ The company, which currently has 150 stores across India, is planning to increase it by three fold and double the 140 outlets it owns in US, China and Middle- East.

■ The company’s Net Sales & PAT are expected to grow at a CAGR of 14% & 10% over FY08 to FY11E.

To read the full report: GITANJALI GEMS